U.S. Firearms Industry Today 2013

The information below is the latest data available. Printed in July 2013 issue of Shooting Industry.

History Repeats Itself With Dramatic Growth, Major Battles.

“The shooting industry has enjoyed robust growth the past two years, much of it driven by buying sprees fueled by the threat of guns bans.”

That is the way this report began in December 1994, my first annual review of the U.S. firearms industry. Then, the industry and gun ownership were under attack, just as they are today. On September 13, 1994, President Bill Clinton signed into law the Federal Assault Weapons Ban (AWB).

The drawn-out threat of the law’s passage, along with other anti-gun tactics, increased firearm sales and U.S. gun production significantly. In 1993 and 1994, U.S. firearm production jumped 40 and 42 percent, respectfully, over the pre-AWB year of 1992 (see page 42). The anti-gun-driven production was so significant, that the industry did not exceed the 1994 firearm production number of 5,161,127 until 2009, the first full year of the Obama Administration.

Yes, history often repeats itself.

Great Contrast

Today’s anti-gun/anti-industry attacks differ, to some extent, from those of the Clinton years. While President Obama continues to push firearm restrictions, he and congressional anti-gun advocates have not been able to establish national limitations, to date. However, significant restrictions are being established at the state level. This is a dramatic change from the early ’90s, and reflects a major shift in the attitude of state governments.

In early 1992, following Colt’s Manufacturing’s filing of Chapter 11 bankruptcy protection, the state of Connecticut pledged millions in support.

“The good faith and credit of the state of Connecticut stands behind this company. We are here to go ahead and stabilize the company, to see it grow. This is one crown jewel that doesn’t leave Connecticut,” said then-Gov. Lowell P. Weicker Jr.

In contrast, in April, Conn. Gov. Dannel Malloy signed into law some of the toughest gun restrictions in the nation, which outlawed numerous firearms made by Colt and other Connecticut-based manufacturers. In doing so, he sent a condemning message to manufacturers and the industry.

The migration of the gun-control movement to the state level is not surprising. The Brady Campaign, and other anti-gun organizations, has been frustrated with their inability to influence and establish harsh national firearm restrictions and limitations on the industry. This year’s anti-gun/anti-industry “successes” at the state level mean this is where major battles will be fought.

Yes, national campaigns will continue, and the industry must remain engaged, continuing to communicate its message to those on Capitol Hill. Just as important, is the need for more industry companies to be directly involved. In April, 43 executives representing 30 companies converged on Capitol Hill to take part in NSSF’s Sixth Annual Congressional Fly-In. Thirty companies out of the entire industry! Yet, there were 1,600 exhibitors at NSSF’s SHOT Show in January.

At next year’s NSSF Fly-In, hundreds of companies should be represented.

In addition, there are more challenges at the international level. The Obama Administration has softened the United States’ position on the United Nations Arms Trade Treaty. That likely will lead to sweeping U.N. arms control, which could impact U.S. gun ownership and the industry.

Yes, there are many battles to fight.

Impressive Growth

The impressive growth within the industry, reflected in the number of firearms sold, should not be credited entirely to volatile anti-gun campaigns that reignited in late December 2012.

The industry was already enjoying unprecedented sales that were not driven by fear or political factors. Many firearm sales since 2010 are attributed to a cultural revival. Americans get it — “It’s okay to own a firearm. It’s okay to enjoy shooting. It’s fun! It’s okay to go hunting.”

This cultural renaissance attracted hundreds of thousands of new gun owners. They, along with established gun owners, created a strong foundation that resulted in the staggering number of firearm sales following the tragic shooting in Connecticut in December — and the subsequent call for unprecedented gun restrictions.

In May, NICS conducted 974,457 (NSSF-adjusted) background checks, a 16 percent increase over May 2012 and the 36th straight month of increases.

NSSF reports their adjusted NICS data shows increases for 2013, compared to 2012: in January (94.4 percent), February (29.1 percent), March (26.3 percent) and April (27.2 percent.) The 1,790,154 background checks conducted in January is the second highest monthly figure ever reported for NICS, surpassed only by the previous high in December 2012 of 2,237,731.

For the first quarter of 2013, Ruger reported sales of $155.9 million, an increase of 39 percent, compared to the same quarter in 2012. For all of 2012, Ruger reported sales of $491.8 million, a 50 percent increase compared to 2011.
In March, Smith & Wesson Holding Corp. reported sales for the third quarter ending Jan. 31 at $136.2 million, a 39 percent increase compared to the same quarter last year.

Freedom Group reports Remington firearm sales for the first three months of 2013 were $194.5 million, an increase of 53 percent, as compared to the first three months of 2012.

According to data from Southwick Associates, Ruger dominated handgun sales in 2012, adding to its top-selling handgun status in 2009, 2010 and 2011.

ATF’s Annual Data

According to the “ATF’s 2011 Annual Firearms Manufacturing and Export Report” — the latest data available — U.S. manufacturers produced 6,351,479 firearms in 2011, an increase of 18 percent over 2010. It was the first time U.S. manufacturers have reported making six million firearms in one year, according to our research.

Ruger was the number one U.S. firearms manufacturer in 2011, out-producing all other manufacturers in the nation for the fourth year in a row. In 2011, Ruger manufactured 1,114,687 firearms, an increase of 23 percent over 2010. Ruger’s promotion, the “Million Gun Challenge to Benefit the NRA,” played a significant role in the company maintaining its top U.S. manufacturer status. In 2011, Ruger pledged to donate one dollar to the NRA for each firearm is sold from April 2011 through March 2012. In the end, Ruger sold 1,254,000 firearms during the period, the bulk of them manufactured in 2011.

“We have wonderful employees at Ruger and I couldn’t be more proud of them. Everyone came together for this challenge. New products were delivered on time, the production folks worked extra hard and we pulled it off. It was a great source of pride for the whole company,” said Mike Fifer, Ruger CEO and president.

During 2011, the most significant increase in production occurred in the rifle category. U.S. manufacturers made 2,318,088 units during the year, an increase of 27 percent over production in 2010. Remington, who produced 646,008 rifles, anchored the impressive rifle growth.

In foreign trade, U.S. exports increased 24 percent in 2011 (see page 50). Mossberg/Maverick Arms again was the top U.S. firearms exporter with 61,857 units exported, a 27 percent jump over 2010.

During 2012, U.S. imports were up 42 percent over 2011 (see pages 52, 54, 55). Austria was the top importer in 2012, with a dramatic 59 percent increase over 2011.

2011 U.S. Production

The top U.S. firearms manufacturers in 2011 and the percentage of change from 2010 were:

NSSF removes NICS purpose codes used by several states for CCW application checks and other purposes. The removal of this data provides a more accurate report of background checks conducted for the purchase of firearms. Visit www.nssf.org/research.